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Fed's Reverse Repo Levels Are Plummeting—Should We Be Concerned?

Rebel Capitalist News

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The Paradox of Decreasing Reserves and Rising Stock Market

This chapter examines the sharp decline in financial system reserves from 2014 to 2019 and its unexpected association with the rising S&P 500 stock market. The discussion highlights the complexities of Federal Reserve actions and challenges the direct relationship between the Fed's balance sheet and market liquidity.

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